Bad brew

31 comments on “Bad brew ”

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1. gitmo 1

   18 December 2009 at 2:03 pm

   He is indeed a moron – perhaps he should be invited to post a few articles on the standard
   • lprent 1.1

     18 December 2009 at 2:06 pm

     He sure is a munter. I don’t think he’d be acceptable here or even at KB. More like No Minister level I think. Ask Gooner.

     It is pretty stupid…. Somewhere in there is a rationale for NZ (ie not just some retailers at the airport past customs). But I read the link and I still can’t see what it is.
2. grumpy 2

   18 December 2009 at 2:09 pm

   I have experienced this in a number of countries. goods for export are exempt GST, so goods purchased by tourists to take home with them come under that definition. In NZ you can do it but it’s very difficult as Customs facilities are not geared up for it. In Australia it’s quite easy but at Heathrow there is a special counter and the queues are so long it’s hardly worth it. The only place I have gone all the way for a refund is the Czech Republic.

   To get the refund you need to physically show the items you have got a special VAT (GST) receipt for. For example, you could buy a camera at a Duty Free shop at the airport or buy one on Queen St and the net cost is the same under the GST refund scheme.
   • Richard 2.1

     18 December 2009 at 3:50 pm

     To do the equivalent thing in Singapore you need to have a receipt and present the item to customs at the airport.

     This means that you have to make the claim *before* you check your luggage in and get your boarding pass — which means arriving at the airport early etc. The hassle means that it’s hardly ever worthwhile — which is possibly the point of the hassle.
     • grumpy 2.1.1

       18 December 2009 at 4:43 pm

       Exactly
3. zelda 3

   18 December 2009 at 2:12 pm

   Interesting work history, he went from working for Banks ( paid for by ratepayers) who then worked for Hide ( paid by taxpayers) then the current gig where he styles himself a CEO of a 2 person office ( all paid for by ratepayers again)
   • sweetd 3.1

     18 December 2009 at 5:26 pm

     Seems like you have an issue with people that have only ever made a living by sucking off the public tit. Interesting blog to make that comment on. Might I introduce you to the former pm Clark, former deputy pm Cullen, and current opposition leader Goff.
     • IrishBill 3.1.1

       19 December 2009 at 1:03 am

       It’s the hypocrisy I find the most disappointing.
4. BLiP 4

   18 December 2009 at 2:25 pm

   The US – well California, Washington DC, New York, and Illinois that I know for a fact – have a really simple solution – the tourist just shows their passport, the clerk scans it or takes down the number, and, voila, any sales tax is removed. This works really well on big purchases but you’re just pissing people off if your doing it for small items.
   • Lanthanide 4.1

     18 December 2009 at 2:33 pm

     This works in the US because their sales taxes are very different to what is used in NZ. Sales tax varies from state to state, and item to item, even sometimes in the way in which you use an item (dine-in restaurants attract sales tax in some states, take-away doesn’t, so the same meal can cost different amounts depending on where you eat it). Sales taxes frequently change from year to year, also.

     This means that all of the computer systems in the US are set up to deal with variable sales tax, including 0% as in the case of a tourist. This is not the case in NZ where GST is a flat tax on almost everything, so not many systems are set up to handle it properly and do so without corner-cases and errors. This includes front-end PoS as well as back-end accounting software.
     • BLiP 4.1.1

       18 December 2009 at 2:48 pm

       Think how easy it would be for New Zealand – just one sales tax!
       • BLiP 4.1.1.1

         18 December 2009 at 2:51 pm

         Even the poor minimum wage sales people in New Zealand can be taught to deduct 12.5% from a total using the cash register. The tourist just has to show their visa, the number noted down against the total deduction, and wack it into IRD.
         • gitmo 4.1.1.1.1

           18 December 2009 at 2:56 pm

           Why should tourists be exempt from GST …… just asking ?
           • BLiP 4.1.1.1.1.1

             18 December 2009 at 3:14 pm

             I agree – the fact is that they are.
5. indiana 5

   18 December 2009 at 2:48 pm

   So if you go to Aussie, spend up on clothes for example as they had a bargain/sale at the store, spend over A$300 on one receipt, go to the airport, show them the receipt and clothes, get your tax back, saving evening more money as you brought the stuff on sale anyway is bad thing and can’t be reciprocated in NZ. Nice!
   • BLiP 5.1

     18 December 2009 at 2:53 pm

     Why complicate the system – just take the 12.5% off at point of sale? Why Brewer would want to employ more public servants seems strange – I wonder what his real game is – wouldn’t be that its been a while since he’s had any publicity, would it?
   • Lanthanide 5.2

     18 December 2009 at 2:56 pm

     The point isn’t that it’s a bad thing, but that it’ll be a net loss to NZ to make it easy to get money back at the airport.

     If the GST were able to be removed at PoS, as per in the US, having lower prices on things could encourage consumption and end up netting more revenue (for the business, not the government) than otherwise. But because the system necessarily in NZ must be carried out when the tourist leaves, it is highly unlikely their extra savings will be spent in NZ.

     Think about it, if you’re an American tourist and you just got given $200 NZ from GST refunds while you’re at the airport checking out, are you going to go spend that $200 on overpriced airport rubbish (which is probably duty free anyway), or are you going to simply convert it back to US $ and save it?
     • Rex Widerstrom 5.2.1

       18 December 2009 at 5:19 pm

       If the GST were able to be removed at PoS, as per in the US, having lower prices on things could encourage consumption and end up netting more revenue (for the business, not the government) than otherwise.

       And we don’t do it this way… why? “because our POS software won’t handle it”? That seems lame to me… adding an extra “0%” button is hardly difficult to code.

       When the government lied and raised the rate from 10%, did we hear software manufacturers say “Sorry mate, too hard, you’ll have to leave it at 10”?

       Provided it could be done at point of sale, putting money back into the pocket of the tourist to spend at the next shop, Brewer’s idea seems perfectly logical to me.

       But I’m sure Peter Dunne appreciates The Standard’s support… the more he hands Bill to spend, the more scratches on the tummy he receives. This could put him over the quota and we’ll all get to see that cute involuntary leg jerk.
       • Lanthanide 5.2.1.1

         18 December 2009 at 7:54 pm

         I never said it would be difficult to do. It’s just expensive. All the little mom and pop shops that have got PoS systems from who-knows-where, will need to get it updated to support variable tax rates. Of course many of these will probably already support it, but I’m sure not all of them would.

         Also I work in software, developing firmware for routers and switches, so I have an appreciation of how difficult something ‘simple’ like sticking a ‘0% button’ on something actually ends up being in practice. Doing the code itself usually isn’t too hard, but it’s the testing and validation and rolling the update out to the customers that is much easier said than done.

         Then there is the accounting systems also. Granted most decent systems will be able to handle this, but again, not all. Furthermore as it is right now, all sales between businesses incur GST, which the company then has to get a refund back from the government. Introducing a new loophole where GST does not have to be charged up front could open problematic loopholes/abuse.
         • felix 5.2.1.1.1

           18 December 2009 at 9:35 pm

           mom and pop?

           Really?
6. tc 6

   18 December 2009 at 3:37 pm

   A man with his future in his hands and his pants around his ankles.

   A reflection of the ridiculous prices Newmarket shops are forced to charge as a result of their high overheads which cammy boy wants the taxpayer to compensate for.

   A natural promotion seeking monkey who obviously woke up and thought gosh I haven’t got my name in the papers lately……this should do the trick…..back to my dolls houses.
7. Pascal's bookie 7

   18 December 2009 at 4:21 pm

   FCK in pingback ironically accuses Marty of getting most things wrong.

   The post begins:

   Mayor of Newmarket Cameron Brewer writes in the Herald today that tourists to New Zealand should be able to claim back GST.
8. Cameron Brewer 8

   18 December 2009 at 4:50 pm

   Thanks for the feedback.

   Re the GST calculation if you read what I wrote carefully – you’ll see I was going for the savings perception it would create among our tourists. I was not offering up the mathmatical deduction….

   “Suddenly in the eyes of tourists every piece of New Zealand jewellery, sizeable artwork, or designer fashion garment is effectively 12.5 per cent cheaper.”

   Merry Christmas everyone.
   • grumpy 8.1

     18 December 2009 at 10:17 pm

     Nothing radical in that. In most serious tourist destinations the stores themselves push the GST/VAT rebate scheme. Makes sense for NZ businesses to do the sam,e.

     Tourists can still get it while leaving NZ – just bloody awkward.
9. Steve 9

   18 December 2009 at 5:32 pm

   Brewer is the result of todays’ teaching. Variable Arithmetic.
   Even if you get it wrong, it is not your fault.
10. just grow up 10

    18 December 2009 at 11:12 pm

    [lprent: distastefully deleted, banned and added to auto-moderation as being a moron unlikely to have anything interesting to say. ]
11. Jared 11

    19 December 2009 at 8:14 pm

    It wouldn’t be quite as simple as deducting 12.5% at the PoS, it would need to be an option to embed it in so 12.5% isn’t calculated and “accounted for”. I can see the merit in the idea though. Increased spending by tourists knowing they will get 12.5% back at the airport would increase sales for businesses ultimately flowing through to a more productive retail sector depending on tourist spending behaviour. Greenstone etc a popular tourist gift is quite expensive, surely this is good for business?
12. diddum 12

    20 December 2009 at 2:15 am

    O for awesome Marty. Wicked good article.
13. diddum 13

    20 December 2009 at 2:16 am

    NOT.

Links to post

1. GST off for tourists a good idea | Fiscally Conservative Kiwi: posted on 18 December 2009 at 2:35 pm
2. More on GST off for tourists | Fiscally Conservative Kiwi: posted on 20 December 2009 at 10:14 pm

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